An opinion was raised that a "macroprudential management levy" should be introduced to impose a charge on borrowers who have taken out excessive loans. The idea is to make specific borrowers bear the expense of excessively using lending resources, thereby managing household debt and demand for dwellings.
Kim Young-do, senior research fellow at the Korea Institute of Finance, said at the "National public debate on real estate policy" held on the 23rd at the KBS annex in Yeouido, Seoul, chaired by President Lee Jae-myung, "We need to consider regulatory measures that are more effective than quantitative regulations such as the loan-to-value ratio (LTV) or the debt service ratio (DSR)," adding, "The housing market is complex, so a single regulation cannot solve every problem. It is necessary to properly combine a variety of policies."
He went on, "Jeonse loans were introduced to ease housing cost burdens for low-income people without homes, but they have caused several social problems, including rising jeonse prices and jeonse fraud. Easing jeonse loans carries significant side effects, but given that the system has already become widespread, we need to consider a gradual reduction by applying end-user requirements more strictly."
On relocation loans, he said, "There are opposing views that current regulations should be eased to revitalize redevelopment projects, and that benefits flow only to a few developers and certain groups," adding, "Considering this, some easing of regulations could be reviewed, but for some borrowers, such as owners of multiple dwellings, nonresidents, and landlords, it is necessary to maintain the current regulatory stance."
Regarding support for youth housing, Kim said, "We need to consider expanding existing support programs for young people. However, we should redesign the policy support framework by distinguishing between rental demand and home purchase demand, and further tighten the criteria for identifying end users."